(26.07.17) Home loan, fixed deposit interest rates might sink further – Reserve Bank of India (RBI) expected to announce reductions in the repo and statutory liquidity ratio (SLR) rates at its bi-monthly policy review on August 2. A private bank official confirmed on Thursday that some banks are likely to announce lower interest rates on home loans as early as next week. He did not confirm a range for the proposed rate cuts. Fixed deposits, which include the special rates of interest on senior citizen deposits, are likely to scale down by around 15-30 basis points on an average, following record low inflation rates in June likely to force the RBI’s hand.(Sources: IB Times)

(24.07.17) IFC invests Rs 130 crore in Aavas Financiers – IFC, a member of the World Bank Group, today said it has invested Rs 130 crore in Jaipur-based Aavas Financiers to extend housing loans to low-income consumers in rural and semi-urban areas who have little or no access to mortgage finance.IFC’s investment will help Aavas Financiers expand their reach to unserved and underserved low-income borrowers in Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, and Delhi/NCR.(Sources: financialexpress)

(24.07.17) Real estate slowdown a myth? Home loan disbursements grew 23% in 2016-17 – NHB data show a win for affordable housing; loans of up to Rs 25 lakh were 76% of all disbursements. According to the National Housing Bank (NHB) data for 2016-17, disbursement of home loans of less than Rs 25 lakh in value – mostly used for buying affordable housing units and accounting for the bulk of the number of home loans disbursed – grew at a healthy rate of 33 per cent over a year earlier.(Sources: business-standard)

(13.07.17) Golden Walking Stick – Home loans for our senior citizens – National Housing Bank (NHB) in 2008 initiated a new home loan product specifically designed to help the senior citizen tide over his twilight years.Golden Walking Stick’, the home loan available for those above 60 years is the exact opposite of a regular mortgage, and therefore called a reverse mortgage. The tenure of the loan is for a maximum of 20 years, and monthly payment is capped Rs 50,000. Larger chunks can be withdrawn in one go, but with a limit of Rs 15 lakh or 50 per cent of the loan amount.(Sources: New Indian Express)

(06.07.17) Housing sales fall over 40% in January-May on slow market – Housing sales fell by 41 per cent during January-May period of 2017 at 1.10 lakh units across 42 major cities as property demand continued to be sluggish post demonetisation, according to PropEquity. Housing sales stood at 1.87 lakh units during the year- ago period. the affordable housing segment has started to pick up with fall in interest rates and the government’s move to accord infrastructure status to low-cost homes and provide interest subsidy. (Sources: economictimes)

(06.07.17) (PMAY) WILL COME UNDER THE PURVIEW OF THE HOUSING SCHEME, NOIDA WILL GET INTEREST SUBSIDY ON HOME LOAN – Now, in Noida, Greater Noida and Yamuna Expressway, home buyers can benefit from up to 2.5 lakh rupees. Indeed, these areas of NCR are being included for the first time in the Prime Minister’s Housing Scheme (PMAY). (Sources: Centrik)

(29.06.17) UP housing board to give subsidies in home loan interest under PMAY – To provide affordable housing to maximum people in state, UP Housing and Development Board has announced to give subsidies to people of different income groups under Pradhan Mantri Awas Yojna (PMAY). The board will be extending this offer under ‘Credit Link Subsidy Scheme’ in which people of different income groups will be given subsidies in interest of home loans on first come first serve basis.(Sources: The Times Of India)

(29.06.17) How utility bills play an important role while applying for a loan – Timely settlements of your utility bills like water bill, electricity bills etc. can soon become a deciding factor for approving your loan application because credit bureaus are planning to include this in individual credit sheets.Soon people will be forced to pay their utility bills on time for fear of getting poor credit scores and consequentially facing loan rejections.(Sources: Business Insider)

(27.06.17) Disbursements of home loans below Rs10 lakh up 43% in FY17 – Affordable Housing Segment booms in the Indian real estate markets, the home loans below Rs 10 lakh have surged by 43% in the last fiscal year (FY2017). However, the home loans above Rs 25 lakh marginally declined by 1%. Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income.(Sources: indiainfoline)

HOME LOAN MCLR RATE (HISTORICAL DATA) OCTOBER 2018

Bank Name

Reduced MCLR Basis Points (bps)

Previous MCLR (%)

Current MCLR (%)

Date

Effective From

State Bank of India – SBI

_

8.00%

7.95%

01.11.2017

01.11.2017

Punjab National Bank – PNB

_

9.40%

8.45%

01.01.2017

01.01.2017

Union Bank of India – UBI

_

9.50%

8.50%

01.01.2017

01.01.2017

Bank of Baroda – BOB

_

9.30%

8.35%

01.01.2017

01.01.2017

ICICI Bank

_

9.15%

8.20%

01.01.2017

01.01.2017

HDFC Bank

_

9.20%

8.15%

01.01.2017

01.01.2017

Axis Bank

_

9.35%

8.25%

01.01.2017

01.01.2017

Kotak Mahindra Bank

_

9.60%

8.85%

01.01.2017

01.01.2017

Standard Chartered Bank

_

9.45%

9.00%

01.01.2017

01.01.2017

Which is the best Home Loan rates provider in India?

State Bank of India (SBI)

LIC Housing Finance

Union Bank of India (UBI)

Bank of Baroda (BOB)

Canara Bank

HDFC Ltd.

Punjab National Bank (PNB)

Allahabad Bank

Bank of India

Federal Bank

Indian Bank

Corporation Bank

Dena Bank

Standard Chartered

ICICI Bank

CITI Financial

Kotak Mahindra Bank

PNB Housing Finance

United Bank of India

State bank of Travancore

Vijaya Bank

Andhra Bank

Deutsche Bank

DHFL

Bajaj Finance

IDBI Housing Finance

UCO Bank

IndusInd Bank

Indian overseas

Syndicate Bank

Royal Bank of Scotland (RBS)

ING Vysya

Central Bank of India (CBI)

GE Money

Development Credit Bank (DCB)

Dhanalakshmi Bank

Indian Bank

Punjab & Sind Bank

Bank of Maharashtara

India Bulls

HSBC

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What is Home Loan?

Home Loan is a Secured Loan offered against the security of a house/property which is funded by the bank’s loan, the property could be a personal property or a commercial one. The Housing Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property.

Home Loan Interest Rates Updated on

Saving up for that first home isn’t easy – especially during these days of unreasonably high house prices. A clear understanding and comparison of these costs can help you choose between two loan providers offering similar interest rates.

State Bank of India (SBI)

SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India.

LIC Housing Finance Ltd. is one of the largest Housing Finance company in India. Incorporated on 19th June 1989 under the Companies Act, 1956, the Company was promoted by LIC of India and went public in the year 1994.

✓ Home Loan Interest Rate: For Women* (loan up to 75 lakhs): 8.35% to 8.85% & For others (Loan up to 75 lakhs): 8.40% to 8.90%. For loan above 75 lakhs, the interest rate for women 8.40% to 8.90% & for others 8.45% to 8.95%

Union Bank of India was established on 11th November 1919 with its headquarters in the city of Bombay now known as Mumbai.

Union Bank has been playing a very proactive role in the economic growth of India and it extends credit for the requirements of different sectors of economy. Industries, exports, trading, agriculture, infrastructure and the individual segments are sectors in which the bank has deployed credit to spur economic growth and to earn from a well diversified portfolio of assets.

✓ Union Bank Home Loan Interest Rate: One Year MCLR + 0.10%

✓ The applicable processing charges are 0.50% of loan amount subject to a maximum of Rs.15,000/- plus service tax as applicable)

Punjab National Bank (PNB)

Punjab National Bank (PNB) reaches out to you with fast, friendly and most convenient home loans under Normal and Flexible variants.

✓ Option to choose between Floating and Fixed interest rates. ✓ Longest Repayment period of 25 years ✓ Flexible/graduated repayment option ✓ No hidden charges ✓ Quick and Fast processing ✓ Lowest EMI of Rs.919/-* per lac for a 25 years loan ✓ EMI is applicable to all existing and new customers ✓ Avail benefit of lower EMI by shifting account with Punjab National Bank.

DHFL was established by Late Shri Rajesh Kumar Wadhawan (16th April, 1949-30th September, 2000), a visionary Indian businessman.

Avail a Home Loan of up to Rs. 500,00,000 (minimum loan amount Rs. 1 lac) but not exceeding 85% of the cost of property (including stamp duty and registration fees) or 80% of market value, whichever is lower.

It has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.

ICICI Bank is India’s largest private sector bank with total assets of Rs. 5,946.42 billion (US$ 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (US$ 1,637 million) for the year ended March 31, 2014. ICICI Bank currently has a network of 3,845 Branches and 12,012 ATM’s across India.

Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership control till July 1969 until it was nationalized along with 13 other banks.

Allahabad Bank, the oldest joint stock Bank of the country, was set up in Allahabad on April 24, 1865 by a group of Europeans. The first directors of the Bank were Mr. G. Brown, Mr. T. Moss, Mr. S. Bird and Mr. A. W. Wollaton. At that juncture, organised industry, trade and banking had just started taking shape in India.

United Bank of India (UBI) is one of the 14 major banks which were nationalised on July 19, 1969. Its predecessor the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932) (which were established in the years indicated in brackets after the names). The origin of the Bank thus goes as far back as to 1914. As against 174 branches, Rs. 147 crores of deposits and Rs. 112 crores of advances at the time of nationalisation in July, 1969, today the Bank is 100% CBS enabled with 1999 branches and offices and is having a Total business of more than Rs 2 lac crore. Presently the Bank is having a Three-tier organisational set-up consisting of the Head Office, 35 Regional Offices and the Branches.

✓ United Bank Home Loan Interest Rate: 8.45% P.A

✓ Processing Fee: Upto 0.50% , Min Rs. 1,000 and Max Rs. 10,000

Dena Bank

Dena Bank, in July 1969 along with 13 other major banks was nationalised and is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, the Bank can undertake other business as specified in Section 6 of the Banking Regulations Act, 1949.

✓ Dena Bank Home Loan Interest Rate: 11.25% to 11.75%

✓ Processing Fee: 0.50% of sanctioned limit..

Indian Bank

Established on 15th August 1907 as part of the Swadeshi movement Serving the nation with a team of over 19429 dedicated staff as on 31.03.2014, Total Business crossed Rs.2,86,633 Crores as on 31.03.2014

✓ Indian Bank Home Loan Interest Rate: 9.55% to 9.75%

✓ Processing Fee: 0.29% of loan amount with a maximum of Rs.20,381

Axis Bank

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

Citi India began operations over a century ago in 1902 in Kolkata and today is a significant foreign investor in the Indian financial market. As promoter-shareholder, Citi has played a leading role in establishing important market intermediaries such as depositories, credit bureau, clearing and payment institutions. Operating 44 full-service Citibank branches in 28 cities, it is the preferred banker to 45,000 small and mid-sized companies.

✓ Citibank offers easy home loan up to ₹ 10 crore on the basis of customers eligibility ✓ Citibank offers a flexible repayment option tenure up to 25 years ✓ Citibank offers home loan up to 80% of the property value.

Federal Bank

The history of Federal Bank dates back to the pre-independence era. Though initially it was known as the Travancore Federal Bank, it gradually transformed into a full-fledged bank under the able leadership of its Founder, Mr. K P Hormis. The name Federal Bank Limited was officially announced in the year 1947 with its headquarters nestled on the banks of the river Periyar. Since then there has been no looking back and the bank has become one of the strongest and most stable banks in the country.

✓ Federal Bank Home Loan Interest Rate: 9.59% to 9.84% p.a

✓ Processing Fee: 0.50% of the loan amount or Rs. 8625 which ever is minimum

Corporation Bank

Started about 109 years ago in 1906, with an initial capital of just Rs.5000/-, Corporation Bank has recorded Rs. 3,27,294 Crore mark in business and even far more, with over 9339 service outlets across the nation, served by committed and dedicated 18,000 plus Corp Bankers. Proof of which is seen in its enviable track record in financial performance. We have many reasons to cheer, predominant of them is, being able to participate in nation building by empowering the rural and urban population alike. Today, we are proud that we are significant contributors to the growth of the country’s economy.

The bank was established in 1945 as the Travancore bank Ltd, at the initiative of C. P. Ramaswami Iyer, then Divan of Travancore. Following violent resentment against the dictatorial rule of Sir. C.P.Ramaswamy Iyer, the bank no longer credits his role. Instead, the Bank now credits the Maharaja of Travancore as the founder, though the Raja had little to do with the founding.

Vijaya Bank today is a PAN India Institution, serving diverse sectors of the society. The bank has built a network of 1512 branches, 48 Extension Counters and 1528 ATMs, that span all 28 states and 4 union territories in the country. The Bank has the highest number of branches in its home state Karnataka.

✓ Vijaya Bank Home Loan Interest Rate: 8.65%

✓ Processing Fee: 0.25% of Loan Amount Till 31st March 2017.

Andhra Bank

Andhra Bank was founded by the eminent freedom fighter and a multifaceted genius, Dr. Bhogaraju Pattabhi Sitaramayya. The Bank was registered on 20th November 1923 and commenced business on 28th November 1923 with a paid up capital of Rs 1.00 lakh and an authorized capital of Rs 10.00 lakhs.

✓ Andhra Bank Home Loan Interest Rate: One Year MCLR + 0.05% for women, One Year MCLR + 0.10% for others.

✓ Processing Fee: 0.50 % of loan amount

How will Banks decide home loan eligibility?

Banks assess the customer’s repayment capacity while deciding on the home loan eligibility. Repayment capacity is based on factors such as income, age, qualifications, number of dependents, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history.